California residents who follow the medical sector are probably aware that the retail pharmacy chain CVS Health Corp. is in the process of acquiring the managed health care company Aetna Inc. in a deal reported to be worth almost $70 billion. Attorneys for the two companies closed the deal in November 2018 and the U.S. Department of Justice approved the acquisition providing the two companies sold certain assets. Most analysts expected the acquisition process to be completed quickly following the DOJ decision, but hopes of a speedy resolution were dashed on April 5 when a federal judge announced that he would be holding hearings to allow those with concerns about the deal to be heard.
Two major players in the entertainment market are being combined as part of a Comcast expansion, which affects international distribution of U.S. programming produced in California and elsewhere. After Comcast took over Sky, it made plans to launch a series of reorganization plans. This process will include the merger of some operations performed by NBCUniversal International with those of Sky.
California business owners need to make sure that their companies are as safe from a cyber attack as possible. This is true whether an individual started a company from scratch or has recently acquired or merged with an existing organization. One way to ensure that a company is secure is to do due diligence prior to merging with another business.
California residents may have heard the news that Nvidia has acquired Mellanox for $125 per share. This translates to a 5.5 percent premium and a total purchase price of $6.9 billion. Although the price is thought to be fair for both parties, it is seen as a risky acquisition for Nvidia. It is thought that there may be limited opportunities for synergy between the two businesses.
BlackBerry, one of the originators of secure smartphone technologies, has become a billion-dollar security company with products aimed at the business market. In February, the firm acquired Cylance, a California-based, privately-held cybersecurity and artificial intelligence company, for $1.4 billion. According to BlackBerry's CEO, the company aims to become the world's largest firm in both fields, offering a range of products to businesses who want to ensure that their employees can communicate securely across a range of platforms.
In a case that is of interest to many Californians, a massive merger of media giants has been affirmed by the U.S. Court of Appeals for the Federal Circuit. The decision paves the way for AT&T to take over Time Warner for $81 billion.
Cylance, a California-based artificial intelligence and cybersecurity firm, has been acquired by BlackBerry, the security firm that originated as one of the leaders in mobile technology. The chairman of BlackBerry said that the acquisition reflects the company's goal of becoming a leader in the AI and security fields. Because BlackBerry contained secure messaging as a part of its platform from its early days, it was well-positioned to include other cybersecurity companies' products within its overall approach. The company stated that its goal is to allow other businesses to create secure communications between their users.
Companies in California may want to expand by purchasing another firm through an acquisition. There are a number of ways that companies can merge with or buy another firm and different structures that the resulting business can take. The way in which an acquisition proceeds depends on how the other company is owned. When the other business is privately held, the owners of the business can decide the selling price and other criteria involved in the purchase. In many cases, buying a privately owned business is a faster, more flexible process than buying one that is publicly traded on the stock market.
Through a deal valued at approximately $66 billion, Sun Trust and BB&T have agreed to merge into a new bank. The combined financial institution has yet to be named and will be headquartered in Charlotte, North Carolina. After the merger is complete, the newly-formed bank will be the sixth-largest in the United States based on assets and deposits.
SiriusXM and Pandora have completed their merger, making SiriusXM the world's largest audio entertainment company. The merger combines SiriusXM's curated and exclusive subscription-based content with Pandora's highly-personalized, free streaming platform. As a result of the transaction, SiriusXM is now able to reach more than 100 million listeners with the company's audio products.